1 EXHIBIT 11.1 KERR GROUP, INC. Statement Re: Computation of Per Share Earnings (Loss) (in thousands except per share data) (Unaudited) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 1997 1996 1997 1996 ---- ---- ---- ---- Primary Net Earnings (Loss) Per Common Share Net loss $(2,047) $(1,120) $(3,177) $(7,355) Less Preferred Stock dividends (207) (207) (414) (414) ------- ------- ------- ------- Net loss applicable to primary earnings per common share $(2,254) $(1,327) $(3,591) $(7,769) ======= Weighted average number of common shares outstanding 3,933 3,933 3,933 3,933 Weighted average number of common share equivalents outstanding 73 0 37 0 ------- ------- ------- ------- Weighted average number of common shares and common share equivalents outstanding 4,006 3,933 3,970 3,933 ======= Primary net loss per common share $ (0.56) $ (0.34) $ (0.90) $ (1.98) ======= ======= ======= ======= Fully Diluted Net Earnings (Loss) Per Common Share Net loss applicable to primary earnings per common share $(2,254) $(1,327) $(3,591) $(7,769) Add Preferred Stock dividends 207 207 414 414 ------- ------- ------- ------- Net loss applicable to fully diluted earnings per common share $(2,047) $(1,120) $(3,177) $(7,355) ======= ======= ======= ======= Weighted average number of common shares and common share equivalents outstanding 4,006 3,933 3,970 3,933 Common shares issuable upon assumed conversion of Preferred Stock 709 709 709 709 Incremental common shares issuable upon assumed exercise of outstanding stock options 0 0 0 9 ------- ------- ------- ------- Adjusted weighted average number of common shares and common share equivalents outstanding 4,715 4,642 4,679 4,651 ======= ======= ======= ======= Fully diluted net loss per common share: As computed $ (0.43) $ (0.24) $ (0.68) $ (1.58) ======= ======= ======= ======= As reported (a) $ (0.56) $ (0.34) $ (0.90) $ (1.98) ======= ======= ======= ======= (a) The calculation of fully diluted net loss per common share for the three months and six months ended June 30, 1997 and 1996 was not dilutive.